Cost Per Equivalent Unit, FIFO Method, Part 1
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- Опубліковано 11 вер 2024
- This video shows how to calculate the Cost Per Equivalent Unit using the FIFO Method. A comprehensive example is provided to demonstrate how the equivalent units of production and the cost per equivalent unit are computed.
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Finally, someone explained to me why for FIFO we need to do (1 - % complete) instead of just multiplying by the %. Thanks so much!
i was going crazy for the same reason lol,generally i dont find cost accounting hard but equivalent units always made me feel retarded,i was finally understanding the concept until i stumbled upon this.
I was sooo lost during the lecture on this. Now I now only understand it but I went back and redid the problem we worked on during class and got everything correct! You made this very clear. Thank you, Professor
THE BEST ACCOUNTING UA-camR !!!
Thank you my friend!
Thank you very much. I understood everything. Knowing the concepts make it easier to understand the example.
Thank you SOOO MUCH! I have read my textbook and I had no clue, and your video teaches me more than the course itself.
5 years later and this is still the best course worldwide.
7 years now
you are a LIFO SAVER or should i say FIFO saver, thanks for the help my book is so useless!
An alternative way to calculate FIFO EUP that made more sense to me is as follows. (Unit completed aka transferred out units - bwip units * bwip completion %) + (ending wip units + ending wip competed %) This gives you the same result but with one less step and no need to remember to multiply using (1 - bwip completion %) but great video thanks as always!!
this video is very useful. he is a guy deserves much happiness as possible for the service he does to all the students around the world.
I needed so much help and I still do! The way you instruct is awesome and it really allows me to understand the material. Thank you so much! This is truly appreciated!
You are a saviour. the world needs more people like you. thank you for the simple and beautiful explanation.
Thanks for making the topics simple through the video
You are absolutely brilliant. Thank you.
Infinitely more helpful than my professor. >_>
Thank you for the kind words!
Watching on 2021 -- you are saving me! Thank you for doing do much good in the world!
Thank you for explaining it so clearly and simple. I was so confused before watching this video.
You're welcome!
I like your way to explain the how to calculate the cost per Unite.
thank you so much i was not able to understand this topic through the book but through your video now i understand it. moving to wac method.
I'm glad my videos have been helpful!
OMGG thank you so much. Your video makes more sense than the book. I was confused about this and finally understood it!! Thank you soooooo much!!!
Thank you very much sir I was thinking that this topic is very difficult but you teach us very well.. Thanksss
Thanks amillion!
You are a beast in ManAcc!
Thanks for the Help Edu Unlocked! You surely got my SUB!
Much better than Kaplan video, thanks so much!
Glad you liked it!
You are my god. I am gonna pass my cost accounting because of you. Thank you so much!!!
Here in 2020, This really helps me to understand this!!! Thank u !
God bless you. This was so annoying in class but I finally get it
I'm glad it finally clicked!
Thank you. Great video, I appreciate the simplicity of it.
Thank you for making that so simple!
Happy to help!
That was a superior explination, of a confusing topic, if not explained properly! Great job!
Thanks Robert!
Many thanks for your explain, When I watch this video I'm better clear than before. Many helpful to me....
Wow this is so much better than the Becker explanation. Question, aren't you supposed to reduce the equivalent units by the beginning balance?
what? how come you just added all the numbers to get the equiv units for the conversion cost? i have a question that asks me to calculate the equi units for the conversion cost using fifo. it says:
-beginning wip, 20000 (60% complete)
-started in April 340000
-completed and transferred out 320000
-ending WIP 40000 (40% complete)
the answer says completed and transferred out + ending WIP - beginning WIP,
which is 320000+40000(40%)-20000(60%) = 324000.
what?
320,000 + 40,000(40%) is the Weighted Average EUP. The whole WIP, beg is included in the 320,000. So you took away the 20,000(60%) which deducted to get the FIFO since fifo only includes uncompleted WIP, end. And I bet you already know this because it's been a year.
shouldn't you be deducting the beginning inventory EUP, and not adding it?
This is extremely helpful, thank you
Regina Fitzpatrick No problem. I hope you do well in your course! Best wishes :)
This made my homework so much easier!!!
You are amaaaazing
i love you edspira
Thank you so much Sir for making this so easy 😊
This was really helpful mate
Thank u very much
what is you know the beginning ending and units started but not what was completed and tranfered out?
what If the question wants to know the equivalent units for direct and conversion but the numbers and percent complete are the same. are the equivalent units the same
How come in my CPA course it says FIFO EFU= % of EWIP units +transfer out-Beg WIPx completion?
I know how to do prime and conversion costs, but the problem I'm trying to solve doesn't include direst material, direct labor, or overhead costs.
Thank you mate !
Glad it helped!
how do you usually arrive at units started and completed ? here it was given but how to arrive at this figure ?
Thanks, very helpful.
Happy to help!
This is so helpful. Thanks a lot!
what if conversion units are not given please?
You should get paid a professor's salary x 10,000. You are a god!! Thank you for this video!!!!
Thank you so much! Things are clear to me now, and I can do my hw.
I'm glad this was helpful to you. Best of luck!
What if we have to calculate equivalent unit for second department with normal and abnormal loss given ? Thanks
Hi! Awesome videos first of all. Question, how do I find the conversion part? (ex: 300 units, 40% complete) How did you calculate those numbers?
it's so helpful
Thanks!
Could you please tell me the tools you use to produce this lectures.
you are a star, thanks
thanks!
why do we multiply the ending work in progress by the percentage of completion because that has been done? am totally confused
We are trying to understand the total amount of inventory that was completed in the period. Basically you want to take the percentage incomplete of the beginning work in progress (the completed portion would have been completed in a prior period). You would then add in all the units started and completed. Finally, you want to calculated the completed portion of the ending WIP (the incompleted portion will be finished in a future period).
thx a lot!!!!
Will we deduct the ending WIP from started and completed units or not ???
plz guide me...Thnakx
No, you do not deduct the ending WIP. You are basically converting the beginning and ending inventories to an equivalent units basis, then you add these to numbers to the units started and completed for the period.
🙏 thank you so much!
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Thanks! The goal is to make CPA prep more managable for those who can't afford a course like Becker. I'm working on audit and tax videos. Thanks for watching!
THANK YOU!!!
Great video but..
How do I calculate the Units started and completed?
WiP opening 225 units (mats 100% complete & Conversion 60% complete)
Started 275 units
Completed and transferred out 400 units
WiP closing 100 units (mats 100% complete % Conversion 50% complete)
I am a student who is studying process costing. I like your question and would like to give an answer. Hopefully it would be correct. We know we started with 275 units and don't know whether all of them are completed. However, there are 100 units in the ending WIP balance which are unfinished units. So the difference between 275 units and 100 units is 175 units that were started and completed during the period. When I add 175 units to WIP opening 225 units, they equal to 400 units completed and transferred out. I think units in the beginning WIP are completed before any new units of production are started during the period. Appreciate if you could check my answer with your professor or anyone who knows this subject well and give me your feedback. Thanks.
Equivalent units started and completed 175 for Mat and 175 for Conversion
Thank you!!
Every time I need to test for performance management accounting, I go back to his video. Thank god and Fk CPA.
Why is the ending WIP deducted from the units started and completed in some instances? CONFUSED!!!!!!
Yes me too it should ne 2000 - 500 = 1500 in started & completed
Hello😊 I just want to ask where did you get the 2000 in units started and completed, i love the video helps to understand our lesson I'm just confused about the 2000 haha thank you in advance
I love you man I love you
Are the 300 units & 500 units already a given info?
I love you
:)
My teacher has taught me any other method for this. Its a little bit similar to this one. I'm getting confused now. Can you do the other method ? plzzzzzzzzzzzzzzzz
Do you mean the average cost method? I have a video for that method posted
Ok I'll check that video too.
I've followed your instructions but when I looked at the choices in our exam, none of my answer appeared? My professor's fault I guess? 😧
Sorry to hear that! I hope you did well on the exam :)
Education Unlocked why thanks, fortunately I passed. I'll look forward to more videos from you. They're very helpful.
How do you get my university to send you the money I paid for tuition? Bless your heart
my professor doesn't subtract the percentage by 100 instead they just use the same direct material and conversion costs
it is not just the video but help me to get full15 marks in my cost paper,love frome india;
how fifo goes with inflation